Florida law allows eligible parties to recover surplus funds that remain after foreclosure sales or tax deed auctions. Surplus funds occur when a property sells for more than the amount required to satisfy the debts or taxes owed.
Former property owners, heirs, lienholders, and other eligible parties may be entitled to claim these funds depending on the circumstances of the sale.
Foreclosure Surplus Funds – Florida Statute 45.032
Florida Statute 45.032 governs the distribution of surplus funds following a foreclosure sale. When a property is sold at foreclosure auction and the sale price exceeds the amount owed on the mortgage and court judgment, the remaining funds are deposited with the court.
Eligible parties may file a claim with the court to request distribution of these surplus funds. The court determines the priority of claims before releasing the funds.
Tax Deed Surplus Funds – Florida Statute 197.582
Tax deed sales occur when property taxes remain unpaid and the county sells the property at auction. If the sale generates funds beyond the taxes, interest, and administrative costs owed, the remaining balance becomes tax deed surplus funds.
Florida Statute 197.582 allows eligible parties to submit claims through the county clerk to recover these funds.
Recent Supreme Court Ruling on Surplus Equity
In 2023, the United States Supreme Court ruled in Tyler v. Hennepin County that governments cannot keep excess equity when a property is sold to satisfy a tax debt. This decision reinforced the principle that property owners may retain rights to surplus equity after debts are satisfied.
Who May Be Eligible to Claim Surplus Funds
Former property owners
Heirs of the property owner
Lienholders
Other parties with a legal interest in the property
Check If You May Be Owed Surplus Funds
If your property was sold at foreclosure or tax deed auction in Florida, you may still be entitled to recover surplus funds.
Alliance Property Allies, LLC. provides free surplus funds reviews to help determine whether funds may be available.